Tesla cuts Model S price by $3,000 amid sales slide

Sales of Tesla's top models have declined by nearly half since 2018

Tesla has cut the price of the Model S by $3,000 as sales of the flagship sedan continue to decline.

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The move follows a $5,000 price drop in May.

The Model S Long Range Plus now starts at $71,990 in the U.S. while the Performance version lists for $91,990.

Unlike legacy automakers, Tesla relies on base price adjustments rather than rebates to incentivize sales. The price of the Model S was also reduced 3% in China.

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Tesla reported 15,200 combined global deliveries for the Model S and Model X SUV in the third quarter, which was down nearly half from the 27,660 recorded in 2018. Overall Tesla deliveries set a quarterly record of 139,300 on the strength of the lower-priced Model 3 and Model Y.

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Tesla recently improved the range of the Model S Long Range Plus to 402 miles per charge, which is the highest of any electric car on sale today.

The price for the new top of the line Model S Plaid high-performance version that goes on sale in late 2021 with a claimed 520-mile range was not changed and remains at $139,990.

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